Beta This part of GOV.UK is being rebuilt – find out what beta means

HMRC internal manual

Company Taxation Manual

Corporation Tax self-assessment (CTSA): the payment obligation: repayment before liability finally established - CTPF

A company that pays CT and later:

  • has a change of circumstances, and
  • has grounds for believing that it has paid too much,

can claim a repayment of the excess (ICTA88/S10 (3)).

It can do this when an assessment:

  • has not yet been made for the accounting period, or
  • has been made but it is not yet final.

Provided there is no open appeal for the accounting period (see CTM92110) the company must give you notice of the claim,

  • stating the amount which it considers should be repaid, and
  • stating the grounds for believing that the amount paid exceeds the company’s probable liability to CT.

You should consider the claim to repayment on its merits. If the company has:

* not made a return and one is not yet due allow the claim
* not yet made a return and a return is overdue establish why, if the company has sufficient information to believe that it has paid too much tax, the return cannot be made; (but that you cannot insist that no repayment can be made in the absence of a return - see CTM92110 if an estimated assessment has been made);
* made a return but the figures do not agree with the claim for repayment ask the company for information to satisfy you that the repayment is due.

A claim under Section 10 cannot be made earlier than the normal due date for payment of the tax. Before that date, any tax that has been paid early is repayable without pre-conditions.